Blog: Leonie BarrieMixed bag in August

Leonie Barrie | 10 September 2007

Delayed back-to-school spending sprees hit US retailers hard in July, so it was a relief to many that preparations for the new academic year gave a boost to August same-store sales growth and overshadowed other worries like the struggling housing market, tightening credit and rising gas prices.

According to TNS Retail Forward’s August ShopperScape survey, August same-store sales growth was 3.0% ahead of the prior month, and shoppers expected to spend an average $571 on their back-to-school purchases. That said, August sales were down 3.9% on the same month last year when the back-to-school estimate was $596. Furthermore, 67% of planned back-to-school spending is now thought to be complete.

So while education offered some respite to apparel chains and department stores last month, it’s likely this was just a blip in a longer-term trend.

“Shoppers were not spooked like stock market investors by fears of a credit crunch. But that only means that the fallout for households will hit home more gradually in the coming months,” said Frank Badillo, senior economist and director of the Retail Forward KnowledgeBase. And there’s more bad news for September, when retailers will be up against some difficult September year-ago comparisons.

US retailers' August 2007 sales roundup


BLOG

US border tax a contentious issue

Fresh from their disappointment at seeing the Trans-Pacific Partnership (TPP) free trade deal abandoned last month with an executive order by President Donald Trump, the US apparel and footwear sector...

BLOG

Primark's sustainable cotton programme takes shape

With the ultimate aim of ensuring all the cotton in its products is sourced sustainably, value clothing retailer Primark is adamant that having a business model focused on offering the lowest prices o...

BLOG

Trump administration starts to shake up trade

Last week we marked the inauguration of Donald Trump as the 45th president of the United States by taking a closer look at what's at stake for the textile and apparel trade – especially his promises t...

BLOG

Likely shifts in the sourcing landscape in 2017

Continuing our look at what lies ahead for the apparel industry and its supply chain in 2017, the panel of industry experts consulted by just-style last week tackled likely shifts in the sourcing land...

just-style homepage



Forgot your password?